ESG Rating Under Regulation (EU) 2024/3005 through the Lens of Digitization
DOI:
https://doi.org/10.46282/bpf.2025.14Keywords:
ESG rating, Regulation (EU) 2024/3005, industry classification, Slovak Republic, NACEAbstract
The paper assumes that entities’ confidence in the credibility of ESG ratings is one of the key prerequisites for unlocking their full potential in financial markets. The growing importance and use of ESG ratings may also support the processes of digitalization and datafication of sustainability-related data. Considering this, the paper positively assesses the adoption of Regulation (EU) 2024/3005 and its aim to facilitate information flows to facilitate investment decisions and to ensure sufficient and consistent transparency of ESG ratings. Regulation (EU) 2024/3005 also builds on the principle of non-interference with the content of ESG ratings and methodologies. Regarding the aim set out in Regulation (EU) 2024/3005, the paper examines the issue of ESG rating transparency and narrows the research to an analysis of the extent to which industry classification influences rating methodology, confirming the hypothesis that the industry classification of the rated entity influences the chosen rating methodology and the resulting ESG rating. Based on the analysis, the paper identifies the risk aspects associated with the impact of industry classification on ESG ratings in the Slovak Republic and formulates requirements for the disclosure of information in this area.
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